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Homes in foreclosure down by 60 percent from last year, 20 percent in one month

The number of single-family homes facing foreclosure in the Charlotte and the nation continues to steadily decline, according to data provided by RealtyTrac and CoreLogic.

For November, RealtyTrac reported a 20 percent decrease from October in homes in the foreclosure process in the Charlotte-Gastonia-Concord metropolitan statistical area, to 746 from 938. RealtyTrac measures notices of defaults, notifications of pending lawsuits, notices of trustee sales, notices of foreclosure sales and real estate owned by lender.

Compared to November 2012, the number of homes in the foreclosure process decreased by 59.12 percent, from 1,825 homes.

The property information provider CoreLogic’s analysis showed a similar downward trend in foreclosure activity for the metro area.

In October, 1.7 percent of all mortgages in the region were in some state of foreclosure, down from 1.84 percent in August. The Charlotte region remains lower than the national average of 2.2 percent in October. CoreLogic did not provide data of the Charlotte region in its September report.

The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the foreclosure process by the mortgage servicer and does not include second liens on homes. According to CoreLogic, Charlotte’s foreclosure inventory decreased by 1.2 percentage points in October from a year ago.

The report also found there were 6,790 completed foreclosures in Charlotte for the year ending in October 2013. CoreLogic defines a completed foreclosure as occurring when a property is auctioned. In addition, 4.7 percent of all mortgaged properties in the metro area were facing serious delinquency in October.

North Carolina’s numbers for the same period show a foreclosure inventory rate of 1.3 percent, down 0.7 percentage points from a year ago. There were 27,068 foreclosures completed in October 2013 and a serious mortgage delinquency rate of 4.3 percent.

The national picture is brightening as well. CoreLogic reported a 30 percent decrease in foreclosures in October from the previous year, with 48,000 completed foreclosures in the U.S. this October, down from 68,000 last year. Month-over-month, completed foreclosures decreased by 25.6 percent, from the 64,000 reported in September.

While CoreLogic’s numbers show improvement in the housing market, before the downturn, completed foreclosures in the U.S. averaged 21,000 per month between 2000 and 2006. Since the financial crisis began in the fall of 2008, CoreLogic reports that there have been 4.6 million completed foreclosures throughout the country.

Nationally, 879,000 homes were in some stage of foreclosure in October, down from 1.3 million in October 2012, a 31 percent decrease. In October of this year, 2.2 percent of all homes with a mortgage were in the foreclosure process, compared to 2.9 percent in September and 3.1 percent in October 2012.

Every state posted a year-over-year decline in completed foreclosures in October’s report, yet the number of properties in the foreclosure process remains historically high.

“The rate remains elevated relative to the pre-crisis level of about 0.6 percent. There are almost 900,000 properties still in foreclosure, but a normal level would be only a quarter of the current stock,” said Mark Fleming, chief economist for CoreLogic, in a statement.

The states with the highest number of completed foreclosures for the 12 months ending in October were Florida with 115,000, Michigan with 50,000, California at 46,000, Texas at 43,000 and Georgia at 39,000. CoreLogic reported that these five states account for almost half of all completed foreclosures during the past year.

States with the highest foreclosure inventory as a percentage of all mortgages were Florida at 7.1 percent, New Jersey at 6.7 percent, New York at 4.9 percent, Maine at 3.8 percent and Connecticut at 3.7 percent.

The five states with the lowest numbers of completed foreclosures for the 12 months ending in October 2013 were the District of Columbia with 57, North Dakota with 411, Hawaii with 491, West Virginia with 514 and Wyoming with 694.

The lowest foreclosure inventory as a percentage of all mortgages in October were in Wyoming and Alaska at 0.4 percent, Nebraska at 0.6 percent, and North Dakota and Colorado at 0.7 percent.

 

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